Citigroup (NYSE: C) reported Q3 results with revenues of $18.5 billion, up 6% year-over-year and beating Street estimates by $230 million. Net income declined to $3.5 billion in Q3, versus $4.6 billion in the same period a year back.
Adjusted earnings in the third quarter came in at $1.50 per share, exceeding Street estimates of $1.42 per share.
Citi’s Q3 results included the impact of the divestiture of its consumer business in Asia worth $520 million in earnings before tax.
Citi’s CEO Jane Fraser commented, “We returned $1 billion in capital to our shareholders and ended the quarter with a CET1 ratio of 12.2%, as we actively managed our RWA [risk-weighted assets] to improve the returns we generate for our shareholders. Given the strength of our balance sheet, capital levels and liquidity, we are well positioned to help our clients navigate very challenging markets and slower growth.”
The bank continues to wind down its Russian operations and “will be ending nearly all of the institutional banking services we offer next quarter.”
Is Citigroup a Buy or Sell?
Citigroup gets a Moderate Buy consensus rating from Wall Street analysts based on five Buys, nine Holds, and one Sell.
The average price target for Citigroup stock is $57.71 implying an upside potential of 34.4% at current levels.